Setting Loan Rules - Community Savings and Lending Group

A key feature of Community Savings and Lending groups is loans being able to be issued to members from the group's savings.

There are various rules, set by the group, around these loans, and they can be captured in MiKashBoks.

The basic rules consider the amount of the loan that can be offered, the grace period before loans are due, the amount of installments and the fee.

For more information on setting loan rules, check out:

You have three options for how much a member can borrow:

An unrestricted amount with the only limit being group cash on hand, this would potentially let one member borrow the whole savings of the group
Up to a fixed amount, for example, 100 Leones
Up to a percentage of their savings in the group - in the above example, a member with 100 Leones saved could borrow up to 300 Leones

Next you will set over how many installments they will repay their loan and any grace period.

For example, a member takes out a 100 leone loan, paid back over five installments with a two week grace period

Lastly you will set the fee for the loan:

No fee, the borrower pays back exactly what they borrow
A flat fee: you set the fee and borrower pays back the loan plus that fee, regardless of the loan size
A percentage of the loan amount: the borrower pays back an amount equal to their loan size multiplied by a percentage of the loan. For example a 10% fee on a 100 Leone loan would require the borrower to pay 110 Leones, the principle of 100 and the fee of 10